Solana clears excess leverage with $12.27M in long liquidations, easing volatility risk.
SOL stabilizes above $172; a breakout above $181 could target $195 and $225 next.
RSI at 58 and strong long/short ratios show bullish sentiment and room for further upside.
Solana (SOL) is trading around $174 after facing a pullback from recent highs near $186. Market data indicates a clearing of excess leverage, which could now allow price action to recover. Analysts are watching closely as key resistance and support levels come into play again, pointing to a possible breakout ahead.
Leverage Reset Clears the Way for a Healthier Uptrend
According to data by Coinglass, SOL futures trading volume fell by 35.54% to $9.59 billion. Open interest declined by 3.97% to $7.08 billion. This shows that high-risk long positions have been closed, reducing volatility pressure.
In the options market, volumes dropped by over 11.44%, with only a slight increase in open interest, pointing to light hedging activity. Despite lower trading activity, sentiment remains tilted toward a recovery.
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Binance reports a long/short ratio of 2.0572, while OKX shows 2.25, both reflecting a preference for long positions. Liquidation data supports the reset theory, with $12.27 million in longs wiped out compared to only $1.11 million in shorts. This indicates that speculative overexposure has largely been removed.
Key Technical Levels Suggest Breakout Potential Above $181
SOL is currently stabilizing above $172, supported by the confluence of short-term SMAs. According to data from TradingView, the 200-day SMA sits at $181 and remains the most critical resistance level in the near term.
The RSI at 58 on the daily chart shows that the asset is not yet overbought, leaving room for another move higher. If SOL clears the $181 level with strong volume, the next resistance lies near $195, followed by $225 based on Fibonacci extensions.
As shared by Crypto Cub on X, "$200+ $SOL coming quick" reflects the growing anticipation. With recent liquidation pressure reduced and broader market momentum holding, Solana may now be positioned for a renewed push toward higher levels.
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